CME cattle futures soften amid recession fears
CHICAGO — Chicago Mercantile Exchange live cattle and feeder cattle futures weakened on Monday amid spillover pressure from weakness in equity markets, analysts said.
U.S. stocks closed lower, adding to sharp losses last week, on nagging concerns about the Federal Reserve’s determination to hike interest rates to fight inflation even as the economy slows.
The risk for a recession hangs over the cattle markets amid concerns that an economic slowdown would reduce demand for beef, analysts said.
Rising prices for grain used for livestock feed put additional pressure on cattle, brokers said. Corn futures hit a two-month high at the Chicago Board of Trade.
“Corn strength and macro market weakness are both still in play,” broker StoneX said.
CME October live cattle futures settled 0.150 cent lower at 142.900 cents per lb. October feeder cattle slid 2.325 cents to close at 181.075 cents.
In the pork market, most-active October lean hogs rose 1.600 cents to 92.250 cents per pound, while December hogs advanced 1.650 cents to 84.600 cents per pound.
In other news, China suspended imports from a Tyson Foods Inc pork processing plant in Logansport, Indiana, the U.S. Department of Agriculture said. (Reporting by Tom Polansek; Editing by Shounak Dasgupta)
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